Cherry SE: Preliminary key figures for fiscal year 2022 and Q4/2022

Cherry SE: Preliminary key figures for fiscal year 2022 and Q4/2022

Munich, March 20, 2023 – Following preliminary calculations, Cherry SE (ISIN: DE000A3CRRN9) ("Company") announces revised preliminary key figures for fiscal year 2022 and Q4/2022 - adjusted EBITDA margin for fiscal year 2022 below previous preliminary calculations.

Based on preliminary and as yet unaudited figures, the key financial ratios for fiscal year 2022 are as follows:

The decrease in revenue results from the deferral of revenues due to the termination of a supply relationship for a product in the Components business unit. The change in the adjusted EBITDA margin was mainly caused by the deferral of revenues in conjunction with a restatement of adjustments.

According to preliminary unaudited figures, Group revenues in Q4/2022 were approximately EUR 34.5 million (Q4/2021: EUR 45.1 million) and the adjusted Group EBITDA margin was 4.6% (Q4/2021: 27.3%).

As a result of the termination of the above-mentioned supply relationship, the Management Board has decided to discontinue the business activities with VIOLA keyboard switches and keyboards with immediate effect. From a commercial, economic, and strategic/conceptual point of view, this product segment does not have sufficient sales potential and thus no prospect of continuous revenues on the required scale.

This leads to an impairment of rights of use, property, plant and equipment as well as inventories in the amount of approximately EUR 3.5 million, which affects earnings before interest and taxes ("EBIT").

Based on the current planning status for the fiscal year 2023 and the business performance in the first quarter of 2023 to date, an impairment loss on intangible assets ("goodwill") of approximately EUR 30 million is expected for the financial year 2022.

The resulting effect on earnings will be reported in EBIT.

The Company will publish its annual report 2022 and its outlook for fiscal year 2023 on March 30, 2023.

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Disclaimer:

This publication contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of Cherry SE and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied by such statements. Actual results, performance or events may differ materially from those described herein as a result of factors affecting Cherry SE, such as changes in general economic conditions and the competitive environment, capital market risks, foreign exchange rate fluctuations and competition from other companies, as well as changes in international and national laws and regulations, particularly with respect to tax laws and regulations. Cherry SE assumes no obligation to update forward-looking statements.

This publication contains supplementary financial measures (not specifically identified in relevant accounting frameworks) that are, or may be, so-called alternative performance measures. For purposes of evaluating Cherry's financial condition and results of operations, these supplemental financial measures should not be considered in isolation or as an alternative to the financial measures presented in the consolidated financial statements and determined in accordance with relevant accounting frameworks. Other companies that present or report alternative performance measures with a similar title may calculate them differently. Explanations of financial ratios used can be found in Cherry SE's Annual Reports, which are available at https://ir.cherry.de/.

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About Cherry

Cherry SE [ISIN: DE000A3CRRN9] is a globally operating manufacturer of high-end mechanical keyboard switches and computer input devices such as keyboards, mice, and headsets for applications in the worlds of gaming, e-sports, office and hybrid workplaces, industry, and healthcare. Since it was founded in 1953, Cherry has been synonymous with innovative, high-quality products developed specifically to meet the various needs of its customers.

Cherry has its operational headquarters in Auerbach in Germany's Upper Palatinate region and employs over 500 people in production facilities in Auerbach, Zhuhai (China), and Vienna (Austria) as well as in various sales offices in Auerbach, Pegnitz, Munich, Landskrona (Sweden), Paris, Kenosha (USA), Taipei, and Hong Kong.

More information is available online at: https://cherry.de/

Contact:

Dr. Kai Holtmann

Investor Relations

Rosental 7, c/o Mindspace, 80331 Munich, Germany

Postal address: Cherrystrasse 2, 91275 Auerbach, Germany

T +49 (0)175-1971503

F +49 (0)9643 20 61-900

E-mail: kai.holtmann@cherry.de